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Financing Aceh and Nias Reconstruction: Where Do We Stand 11 Months After the Tsunami?

This report provides an overview of the financing efforts for the reconstruction of Aceh and Nias after the devastating tsunami. It highlights the sectoral gaps and the need for prioritizing project implementation to ensure effective recovery. The report also examines the progress of the Multi-Donor Trust Fund in supporting the reconstruction efforts.

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Financing Aceh and Nias Reconstruction: Where Do We Stand 11 Months After the Tsunami?

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  1. Wolfgang Fengler Financing Aceh and Nias Reconstruction Where do we stand 11 month after the Tsunami? Syah Kuala University, 25. November 2005

  2. The big picture – An estimated US$ 8-10 billion for the reconstruction period (2005-2009) GoI Donors Private • APBN (BRR) • APBN (Decon) • MDTF • Multilaterals • Bilaterals • NGO • Private companies • Others ① $ 2,500-3,000 ④ $ 2,500-3,000 ② $2,500 ③ $1,400 On Budget Off Budget Source: CGI pledge table, BAPPENAS; NGO websites; NGO interview; World Bank; UNDP; internet search

  3. How to measure existing reconstruction finance? • Review of 700 projects (about 400 from NGOs, 200 from donors: + 100 government budget line items) • Classification of projects in 3 categories: • transitional support/relief • reconstruction activities • broader development projects • Identify the core reconstruction program and match it with projects

  4. Who is financing the reconstruction effort so far?

  5. Sectoral Composition of Projects

  6. Sectoral Gaps: Projects versus Damage& Loss Assessment and Master Plan

  7. Sectoral Gaps: Projects Vs Core Needs

  8. Conclusion • US$ 3.7 billion dollars have been programmed but disbursements are slow (below US$ 500 million). This is enough to build back – but not better. • Implementing these US$ 3.7 billion worth of projects fast and well should be highest priority. • Several sectors are still under-funded (Transport, housing, flood control/environment)

  9. Multi-Donor Trust Fund • Funds available: US$ 530 • Funds programmed: US$ 312 • Main projects • Recovering land rights ($28.5 million) • Rural community recovery ($64.7 million) • Urban community recovery ($18 million) • Housing for 1000 villages ($150 million)

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